JPMorgan Chase Pays nearly $1 Billion in Fines for Market Manipulation of Precious Metals and U.S. Treasuries

JPMorgan Chase & Co. agreed to pay over $955 million to settle civil and criminal charges over a scheme involving fake trades in precious metals and U.S. treasuries designed to manipulate the market in an effort to enhance the bank’s profits and cut losses. The multi-agency enforcement action was brought by the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). For...

Market Manipulation & Trading Violations

Fraud in the trading and pricing of securities and financial products and other market manipulation schemes undermine the integrity of the markets and can cause substantial harm to investors. Such fraud can be committed by broker-dealers, financial exchanges, transfer agents, and other market participants including traders in off-exchange markets such as dark pools. These schemes can violate securities laws of the Commodity Exchange Act, depending on the markets and securities...

SEC Charges Day Trader for Fraud and Market Manipulation

By the C|C Whistleblower Lawyer Team This week, the Securities and Exchange Commission (“SEC”) announced charges against a day trader accused of accessing over 100 victims’ brokerage accounts to make unauthorized trades that artificially altered various stock prices. The defendant, Joseph P. Willner, allegedly traded on those artificial prices using his personal account to secure at least $700,000 in illicit profits. The SEC filed its complaint in U.S. District Court...

CFTC Whistleblower Alert: Whistleblowers Wanted Relating to Misconduct in Carbon Markets

On Tuesday, the Commodity Futures Trading Commission (CFTC) issued a Whistleblower Alert calling for help in identifying fraud or manipulation in the carbon markets.  The CFTC is the principal federal watchdog for fraud involving the commodities markets.  Under the CFTC Whistleblower Program, those who voluntarily provide information that leads to a successful CFTC enforcement action are entitled to an award of up to thirty percent of any government recovery.  Certainly...

SEC Chairman Views Cryptocurrency Markets as the “Wild West” and Calls for More Investor Protection

During a recent speech discussing the intersection of national security with cryptocurrencies at the Aspen Security Forum, Gary Gensler, the new Chairman of the Securities and Exchange Commission (SEC), made clear the SEC will use its broad powers to continue protecting investors from the volatility associated with cryptocurrency markets which he characterized as the “Wild West.”  He also urged Congress to grant the Commission additional powers and resources to prevent...

Judge Meg Ryan Named SEC Director of Enforcement -- What It Means For SEC Whistleblowers

By the Constantine Cannon Whistleblower Team An Unconventional Pick to Lead SEC Enforcement Last Thursday (August 21), the Securities and Exchange Commission (SEC) announced that Judge Margaret “Meg” Ryan will become the new SEC Director of Enforcement.1  She will take over for Acting Enforcement Director Sam Waldon, who will return to his prior post of SEC Chief Counsel.  Judge Ryan’s appointment is a strong indication the agency will continue on...

Whistleblower Question of the Week: How Do Financial Rewards Work for Whistleblowers?

By the Constantine Cannon Whistleblower Team In the United States, financial rewards for whistleblowers are offered through several government programs designed to encourage individuals to report fraud, misconduct, or violations of the law. What Is a Whistleblower Reward? By initiating actions under the False Claims Act and other whistleblower reward laws and programs, whistleblowers may receive a percentage of the money the government recovers as a result of their information. If...

Top Ten SEC and CFTC Recoveries of 2023

It was an active year for fraud enforcement at the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC).  Though by no means was it a record year for either regulator in terms of big-ticket wins.  Aside from the CFTC's $1.7 billion recovery from South African crypto company Mirror Trading for foul play with foreign currency transactions, the balance of the Top-10 recoveries was just about $1.2 billion....

CFTC’s 2023 Annual Report on Whistleblower Program Highlights Program’s Success and Important Role of Whistleblowers

The CFTC’s 2023 Annual Report to Congress on its whistleblower program highlights the success of the program and strongly reinforces the important role whistleblowers play in rooting out commodity frauds. The CFTC’s Whistleblower Program “provides monetary incentives to individuals who report possible violations of the Commodity Exchange Act that lead to a successful enforcement action,” and provides “privacy, confidentiality, and anti-retaliation protections for whistleblowers.”  The program awards whistleblowers with up...

September 12, 2023

Canadian resident George Stubos will pay disgorgement of $5,367,926 and prejudgment interest of $806,108 for his microcap stock investment scheme. Stubos gained control of several thinly traded microcap companies and then lied to investors, brokers, and transfer agents, and convinced them his stock shares were eligible to be publicly traded. In addition to not registering his sales with the SEC and failing to disclose his control over the entities, Stubos...